If the government uses a head tax to finance a public good, then the:
A. proportion of income paid in taxes increases as income rises.
B. proportion of income paid in taxes declines as income rises.
C. proportion of income paid in taxes is constant.
D. dollar amount paid by each taxpayer declines as income rises.
Answer: B
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Which of the following would cause an increase in the supply of cheese?
A) a decrease in the price of wine (assuming that cheese and wine are complements) B) an increase in the price of cheese C) an increase the price of a product that producers sell instead of cheese D) an increase in the number of firms that produce cheese
The development of new technology typically:
A. shifts the supply curve to the right. B. reduces profits. C. results in a downward movement along a supply curve. D. shifts the demand curve to the right.